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Dealing With News in Your Trading

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12 views2 pages

Dealing With News in Your Trading

Uploaded by

jinibo6639
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Dealing With News In Your Trading

News are a big part in Forex trading and we can’t avoid them. Sooner or later, news events will
interfere with our trading. All we can do is establish an approach where we define guidelines so
that we know exactly what to do in certain situations.

Different news types – what is really


important?
There are dozens of events and news releases every day but not all are meaningful. Here we
recommend two news calendars which you should check every morning to get an idea of what is
happening that day and then we also check it before we enter a trade as per our checklist.

We recommend those two news sites:


▪ ForexFactore calendar
▪ FxStreet calendar
The good thing is that both calendars provide information about the importance of each news
event. There are three different types of news releases:

1. Low impact news


Those are usually marked in yellow and they rarely move the market in a significant way.
We can, for the most part, ignore them. I personally don’t pay attention to low impact news
events.

2. Medium impact news events


Those are marked in orange. If you are a 4H trader, you usually don’t need to pay too much
attention since the effect on price movements is normally not significant. Of course, there are
exceptions every now and then.

If you trade on the 1H, the medium impact news items can mess with your trades and below I
show you how to deal with news.

3. High impact news


Those are marked in red and high impact news events almost always move the markets in
significant ways. Often, you can even see that before a high impact news event the markets are
changing and price action slows down or becomes a little more erratic.

Dealing with news in your trading


There are a few principles that I use in my own trading and they can serve as a guideline for you
as well. Of course, they are just suggestions and you can make your own rules and test different
strategies out for yourself.
▪ I don’t take a new position 30 minutes before a high impact news event. When I trade on the 1H, I
don’t take a new position on a medium news event, unless the setup is extremely good
▪ I don’t enter new trades until 30 minutes after a high impact news event. I let the ‘dust settle’ first
and reevaluate the situation. Remember, that we sometimes get trap patterns after a big news
movement
▪ When I am in a trade, I either exit the trade fully (especially before a high impact news event), or I
take partial profits, or when I am well ahead I move my stop loss closer to a reasonable place and wait
it out

There are certain high impact news events where I will always exit my positions and those are:
FOMC meetings, central bank meetings/speeches, interest rate decisions, NFP reports

Other high impact news events usually don’t carry as much weight but there are exceptions to
this:
Crude oil inventories, PPI, Retail Sales and Building Permits

Those are my principles that I use in my own trading and they can help you deal with news in a
structured way. I recommend that you make your own observations and keep track of the impacts
of different news releases.

www.Bestblackhatforum.com Thanks to mr.Sir for share and skillerm for uploading.

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